Toronto 
Ontario is proposing a new measure aimed at reducing housing costs for first-time home buyers and encouraging home construction.
The provincial government announced plans to rebate the full 8 per cent provincial portion of the HST on newly built homes valued up to $1 million, as part of its upcoming 2025 Fall Economic Statement.
If approved, the rebate could save first-time buyers up to $80,000 on a new home when combined with existing provincial housing relief programs. Together with the federal government’s proposed removal of its 5 per cent HST portion, total savings could reach $130,000 for eligible purchasers.
Finance Minister Peter Bethlenfalvy said the initiative is part of efforts to make life more affordable amid economic challenges. He noted the rebate would provide “more money back in the pockets of Ontario families.”
The proposal follows Ontario’s earlier call for federal collaboration to improve housing affordability. The provincial rebate would mirror the federal First-Time Home Buyers’ GST/HST Rebate, offering equivalent relief on qualifying new and substantially renovated homes.
Housing Minister Rob Flack said the measure would also benefit workers and builders by supporting continued housing construction.
Key details of the proposed Ontario rebate include:
By rebating the provincial portion of the HST, we’re saving first-time homebuyers up to $80,000 off the cost of a new home!
This rebate will bring homeownership in reach for thousands of young families across Ontario. https://t.co/B9prP8T8If
— Doug Ford (@fordnation) October 28, 2025
- Rebates the full 8% provincial HST portion for first-time buyers of new homes priced up to $1 million.
- For homes between $1 million and $1.5 million, the rebate would gradually decrease, ensuring a minimum of $24,000 relief for homes priced between $1.35 million and $1.5 million.
- Available in addition to the existing Ontario HST New Housing Rebate, which already provides up to $24,000.
- Would apply to purchase agreements signed on or after May 27, 2025, with construction starting before 2031 and substantial completion before 2036.
- The home must be intended as the primary residence of the buyer.
- Implementation depends on the passage of federal legislation and necessary regulatory changes.
Per the news release, the province is also continuing record investments in housing infrastructure, including $4 billion for the Municipal Housing Infrastructure Program and $1.2 billion for the Building Faster Fund.
Further details about Ontario’s fiscal outlook and economic initiatives will be outlined in the 2025 Ontario Economic Outlook and Fiscal Review, scheduled for release on November 6, 2025.
